Payroll Solutions For Small Businesses

Managing payroll accounts can be a very challenging task for a small business. It takes lots of time and requires a good working use of all the current federal and state tax codes. For small business with owners struggling to find the right solution, the good news is that there are several excellent options.

Outsourcing

Managing payroll can be a very tedious and time consuming process. Some analysts estimate that a small business with about 20 employees requires an employee to spend roughly a half-day of work during each pay period to process accounts.

For most companies, with payroll taking place bi-weekly, that means one whole day of work every month, time that may be more profitably used in other capacities. When this is the case, you may want to consider outsourcing your account management to a third party like an accountant or bookkeeper. You just have to provide them with your employee's time cards or work hours.

Your accountant will then take care of the calculations, figuring in the correct deductions and withholding's. Plus they will provide you with the necessary documents, like paychecks, pay stubs, and yearly tax forms and reports. Outsourcing may be more expensive than other options, but it certainly saves a lot more in terms of time, headaches, and energy.

Online Payroll Services

One very smart third party option is to use an online service for your needs. These are Internet based companies that are concentrated solely on such solutions. All you do is submit your employees work information online and the service calculates the wages and taxes in a matter of minutes.

They automatically withhold the appropriate taxes and you print out paychecks from your own printer, or you can have your employees sign up for direct deposit and the online service will put the money directly in their bank accounts.

And most online companies have customer support phone lines that you can use to get help or ask questions as needed. There is of course a small monthly fee involved with paying for this type of payroll solution, but it is quick and easy and hassle-free.

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